Butter price rises drive Russia's weekly inflation
Butter prices have jumped 27.5% since December
11 November 2024
1 minute read
By: Russia's weekly inflation slowed to 0.19% from late October to Nov. 5 from 0.27% a week before, data from the Rosstat statistics service showed on Friday, with the rise in prices driven by the cost of dairy products, primarily butter, reported Reuters.
President Vladimir Putin says that Russia's war economy is well balanced to supply both guns and butter, but the price of butter itself is now soaring as surging inflation distorts parts of the economy.
The price of a block of butter has jumped 27.5% since December, according to official statistics, but Reuters has found evidence of even steeper price rises. The spiralling costs have prompted butter thefts at some supermarkets.
Butter prices rose 1.4% between Oct. 29 and Nov. 5, Rosstat said, with prices for sour cream, milk and cheese rising 1.0%, 0.8%-0.9% and 0.6% respectively.
Inflation is running at 6.75% since the beginning of the year, Rosstat data showed, well above the central bank's 4% target. The central bank expects inflation to end the year between 8%-8.5%, up from 7.4% in 2023.
Inflation is a sensitive issue in Russia, as it dents real incomes, but it is also the central bank's main area of concern and persistently high inflation has led to a series of sharp interest rate hikes, leaving the cost of borrowing currently at 21%.
